After the pandemic, the number of first-time buyers of Amazon Pantry and Fresh services doubled with more than 60 percent of new customers coming from Tier 2 and 3 cities.

Earlier this year, the company consolidated its pantry and fresh produce services in select cities. business line He spoke to Siddharth Nambiar, Director of Category Management, Amazon about the growth of the company’s grocery business since then.

How has Amazon’s grocery category performed since last year?

Grocery has been one of our fastest growing categories with a national delivery service that provides a selection of over 4 million products to customers across dry groceries, personal and health care, toys, baby products, pet products and personal care products. Covid-19 saw sellers’ listings rise 30 percent in personal care products, dry groceries, and medical devices. Amazon Pantry + Fresh post Covid first-time buyers doubled with more than 60% of new customers coming from Tier 2/3 cities.

Amazon Fresh is available to customers in 14 cities currently – Bangalore, Delhi, Faridabad, Gurgaon, Ghaziabad, Noida, Ahmedabad, Mysore, Jaipur, Mumbai, Hyderabad, Chennai, Pune and Kolkata. In the remaining 286 cities, customers will continue to earn savings on select dry groceries on Amazon Pantry.

How does Amazon overcome logistical challenges such as bad roads or traffic in Indian cities to ensure 2-hour delivery under Amazon Fresh?

We continue to invest in technology and innovations in logistics to ensure timely, reliable and secure delivery of customer orders. We’ve built a niche infrastructure for Amazon Fresh, the ultra-fast delivery service for daily essentials and groceries. These premises are designed to ensure safe storage of products and to process customer orders with the latest equipment and technology. This includes a dedicated warehousing infrastructure for dry groceries, fruits and vegetables, and chilled and frozen items with specialized temperature-controlled rooms for each of these categories. We’ve also incorporated gel pad freezers into our delivery vehicles to deliver the last mile of frozen and refrigerated items. This infrastructure combined with best-in-class routing technology enables timely and predictable deliveries.

At the same time, the safety of our delivery partners remains our top priority with a special focus on road safety and multiple drills to ensure they remain safe while delivering customers’ orders on time.

Can you share some of the grocery buying trends and buying patterns seen this holiday season?

During the early days of the Great Indian Festival, customers loved to shop for cooking essentials, as we witnessed a threefold rise in sales of essential items like sugar, oil, atta and more. Home and personal care products were also in demand and saw a 3.5-fold increase. Also, while customers were shopping for daily necessities including packaged goods, they also loved to shop for fruits and vegetables, as at least one in two baskets carried a fruit or vegetable. in addition to , Amazon Deals were offered on thousands of products at Fresh & Pantry and over 90% of customers enjoyed shopping for these deals.

We feel confident given the way our vendors prepare, the infrastructure and support we have set up, this Diwali should be good for our vendors and of course our consumers. Customers can look forward to shopping from a wide range of products across categories from the comfort and safety of their own home.

How was the withdrawal from the central / non-metro areas last year? Has there been any significant shift in consumer demographics in the past year?

In the past 15 to 18 months, we’ve seen a lot of customers go online. Nearly 65 percent of customer orders and more than 85 percent of new customers in Amazon They are from Level 2 and 3 cities. Therefore, their first purchase is usually a grocery product.

Now that we’ve combined convenience (Amazon Fresh) and value (Pantry) propositions in one store, we see a lot of potential in the top 10 cities to attract shoppers with different shopping tasks with our consolidated stores. In major cities in the rest of India, we’ve seen a lot of online grocery adoption after the pandemic. We will continue to build on our presence and quality of service in these cities to further accelerate the adoption of new customers.

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